Friday, July 11, 2008

Harley-Davidson acquires MV Agusta and Cagiva for US$110 million

Yes, it's done. Harley have finally bought MV Agusta...

After weeks (months?) of speculation, it’s finally official – Harley-Davidson are buying a 100% stake in MV Agusta, for US$110 million. This amount will also take care of MV’s US$70 million bank debt. The acquisition is expected to be completed in a few weeks from now.

Apart from the money that Harley is paying now, the sale agreement provides for a contingent payment to Claudio Castiglioni, in 2016, if certain financial targets are met. Until now, the MV Agusta Group was privately held, with the Castiglioni family holding 95 percent of MV shares.

With the MV Agusta Group having sold off its Husqvarna brand to BMW last year, the group now sells bikes under the MV Agusta and Cagiva brands. The company has about 500 dealers worldwide, with most of them being in Europe.

MV will continue to operate from its headquarters in Varese, Italy. Harley will bring in new management and a new managing director, who’ll hopefully start work on new product development. Of course, the company will continue making current models in the foreseeable future.

Claudio Castiglioni will continue in his current position as chairman of the MV Agusta Group, and will play a key role in the development of new bikes. And yes, MV’s design chief Massimo Tamburini will also still be there, doing what he does best – designing absolutely glorious Italian motorcycles.

‘Our customers seek an uncompromising experience in premium performance motorcycles. And with Harley-Davidson's deep understanding of the emotional as well as the business side of motorcycling, I have great confidence that our motorcycles will excite customers for generations to come,’ said Castiglioni.

With this acquisition, Harley hopes to be able to expand its presence in Europe.

Here are some pics from the 15th MV Agusta Revival meet held recently in Varese, Italy